Watson Leaders Discuss Fall/Winter 2021 Real Estate Market Predictions

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Watson Realty Corp. gathered data and statistics from the leaders in the real estate world, including the National Association of Realtors® and Inman to discuss key changes in the industry for the fall/winter 2021 season. Watson leadership and real estate experts, Regional Vice President of Watson North Central Region and Northeast Florida Association of REALTORS® President Mark Rosener and Regional Vice President of Watson Central Region Jeffrey Fagan, joined the discussion to tell us their predictions for Florida and Georgia.

The biggest change predicted is going to be not just cooler weather but a cooling market with home prices slowly evening out since their peak in summer with no crashes projected, predicts Inman. Both Mark Rosener and Jeff Fagan concur with industry professionals, assuring no crash is expected any time soon.

Will the market crash in Florida or Watson footprint regions?

“Although there has been significant upward movement in terms of median and average price, we do not see a crash [happening],” said Mark. “Price increases have been driven by exceptionally limited inventory, [so] there is no indication that will change substantially.”

“I agree with Mark’s assessment,” echoed Jeff. “While the market in general has stabilized marginally, there is now the beginning of a differentiation within the market. There will not be a crash, and in my opinion, there will be continued slow moderation.”

Predictions for the rest of the season include less home sales overall leading to a much-needed increase in home inventory in many areas of the country, including Houston, D.C., and Denver.

So, what does this mean for Florida and South Georgia customers? Will we see an increase in inventory or will it remain low?

“Inventory is beginning to open up slightly in most of our markets,” said Mark. “We believe there will be incremental increases in terms of active residential homes for sale over the next six to twelve months that will help to stabilize the market, but most likely, inventory will remain low compared to historic levels.”

“Slow growth in inventory as the market tries to find its equilibrium, while new construction starts have drastically trailed demand for over a decade,” added Jeff. “And with [current] supply chain issues, this segment will take at least ten years or more to even out in Florida.”

Another trend we are seeing is Millennial homebuyers making up the majority of new homeowners, according to the Wall Street Journal, and they are pooling their resources together with friends, roommates, etc. in order to get their foot in the door of property ownership.

Is this Millennial-based trend happening in Watson’s regional markets as well?

“Yes, it is a trend that we are experiencing and it likely will expand, particularly if the number one hinderance of property acquisition – student loan debt – is reduced through government action…stay tuned,” said Jeff. “We also are seeing a wonderful advancement of female head of household property acquisition in the current environment.”

“There is no question that household formations from the Millennial Generation are fueling a part of the current demand for residential real estate,” answered mark. “We see that happening across the board in most markets that Watson Realty Corp. does business. This is a national trend that is definitely happening in our markets, and we anticipate it will continue over the next one to five years.”

Overall, real estate market leaders nationally and locally predict a slowly stabilizing market with no crash in sight for fall/winter and beyond. That’s good news for both buyers and sellers alike.

For more information on the real estate market or to arrange an interview with one of our real estate experts, contact Danielle Stedham at dstedham@watsonrealtycorp.com.